Many thanks for your post.
We aren't aware of any specific version limitations, although if we don't get it working I can install the same version here to double check.
SQL Backup 5.4 is compatible with SQL Server 2008 R2 if you already do not have it installed you can download the same from here: http://downloads.red-gate.com/checkforu ... 4.0.55.exe
I guess you can fix this issue by manually installing SQL Backup Agent service.
When I asked about installing the service manually, this basically meant to run the "SQBServerSetup.exe" directly on the server in question. You'll find this in c:\\program files(x86)\\Red Gate\\SQL Backup 5.
This may be what you already tried, but it's worth double checking! When you run it, it is probably worth right-clicking it and choosing "Run as Administrator".
If that still doesn't work and you don't get the service showing, can you run the above but from the command line, adding /Log on the end? i.e:
This will create a file in your temp folder (i.e. c:\\users\\<profile>\\appdata\\local\\temp named "Setup Log 2010-06-23 #xxx.txt" - if you can send back that log, it may provide some useful information.
I look forward to hearing from you.